AT&T Gets a Smaller Than Expected Rise in Quarterly Revenue

AT&T Inc, the No. 2 U.S. wireless carrier, reported a smaller-than-expected increase in quarterly revenue as it earned less from each postpaid customer for its wireless services amid growing competition from rivals.

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The company said on Tuesday that average revenue per postpaid user fell 2 percent in the fourth quarter ended Dec. 31.

AT&T said it added a net 526,000 postpaid and 469,000 prepaid customers in the quarter.

Analysts had expected net additions of 485,000 postpaid and 354,000 prepaid connections, according to FactSet StreetAccount.

AT&T's shares were down more than 1 percent in extended trading.

An oversaturated U.S. wireless market has led to fierce competition between market leader Verizon Communications Inc, AT&T and smaller rivals Sprint Corp and T-Mobile US Inc, which have stepped up promotions to entice customers.

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AT&T has been seeking new revenue streams and is betting on the acquisition of the DirecTV satellite TV business to help beef up its bundles of cellular, broadband, TV and fixed-line phone services.